QUESTION:
- I am wondering if you could provide some information on the types of advertising plans you have if a National Account is received. Many shareholders/posters have claimed that Winning Colours Product simply sits on certain stores shelves with no product turnover for weeks. Although I can not confirm what they say is true or not, I would hope that is not the case if we finally received a National Account.
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ANSWER:
The primary obstacle to us having a national advertising campaign is actually not money, but rather the fact that a national retailer(s) is not yet on the team to justify it. The purchasing activity of a national retailer is on a much larger scale compared with independent stores or smaller local groups. For example, a single paint store might purchase one case of product at a time, whereas a national retailer could order 2,000 cases at a time. This creates a surge in working capital because the difference between a single case and 2,000 cases translates to the difference between a $54 delivery and a $108,000 delivery to a single customer. This is clearly more efficient and would provide the means for increased marketing investments.
Also, the old-fashioned definition of national advertising required “network broadcast” advertising. Today, there are more ways of reaching people than ever before. There is more affordable advertising available today to support a national listing, that is still “national”. This includes, for example, sponsorship of a well targeted cable television program at regular times, so that its national audience becomes familiar with the product. Beyond the diversity of “national reach” broadcasting there has been a profound shift in the role of on-line information gathering from dry research into entertainment of various kinds, compounded by social media as a marketing platform.
Furthermore, when dealing with a national banner, it becomes possible to show the logo of the retailer at the end of the commercial or in the print/on-line advertising without needing to provide any more location information. Approximately 15 million Americans shop at Lowe’s every week. The numbers are equally impressive for Walgreens, Home Depot, Walmart, Staples or Office Depot, Sam’s Club and other such stores. Most adult Americans know where the major banners are in their communities. They don’t need an address, a telephone number or even operating hours (since most are now open 7 days per week). When we eventually are available in such national banners, ads of various kinds, purchased wisely, can appear “anywhere” and direct people to a banner that they know and trust – and which likely has a location within a reasonable distance of their home.
Additionally, the appearance of a national banner in an advertisment of any kind represents a form of endorsement that consumers will recognize as an implied approval of the product – rightly so, because national retailers are selective. It may seem that they carry tens of thousands of products, however if you consider that the retailers are organized into departments, the number of offerings in any given category of product is much smaller. Once in such an environment, our product would be exposed to a much higher volume of shoppers than ever before. It has been proven that even if the consumer does not recognize the brand, consumers are more willing today than ever to depart from standard national brands – however they need convenient access to them. Being in a national banner provides this access.
A national banner organization usually has internal infrastructure for training of associates with product knowledge. Our negotiations with potential national retailers includes discussion about access to such internal resources. We have found a positive correlation between store settings that cooperate in building awareness and our product velocity. The differences range from the product gathering dust on the shelf to product selling every day.
The most attractive thing about Winning Colours Stain Remover as our lead product, and the Winning Brands business plan, is that it requires little more than first-hand experience with Winning Colours to generate positive relationships. Not everyone will love the product, that’s obvious, even Coke and Pepsi have their own fans. However not everyone needs to love Winning Colours Stain Remover for it to be a tremendous success. Winning Colours Stain Remover could be a $100 Million brand, in the USA alone, even if 90% of U.S. households never purchase the product.
Winning Brands has demonstrated that it is passionate about its mission, yet practical in its approach. Everything we have done has led logically toward the desired outcome, Our opportunities are now greater that ever in the still relatively young life of this brand. Securing even a single truly national US retail partner will be a game changer. That banner will benefit enormously because we are going to work harder and more effectively for mutual success than anything they are used to. We will benefit enormously from the logic of scale. Our shareholders will benefit enormously because the plausibility of our attainment of the stated business plan will have gone through the ultimate vetting process of survival that champions must endure. There is ample precedent of how such winners are rewarded. That’s the most important thing in my business life – to throw everything I’ve got into the single minded goal that the supporters of this company, including its shareholders, customers and staff end up with a success story that honours their positive spirit.
Anyone who remarks that we have not yet accomplished this goal is merely pointing out that the final score is not yet in. We all know how mistaken one can be in calling the game at half-time.
